#Ledger live multiple accounts software

Accounting software will render the subledger vs. If you’re using accounting software to manage your business finances, your software will automatically create subledger accounts for you, eliminating the need to track these transactions separately. But once vendor or customer activity increases, you’ll need a way to track the individual transactions that make up the balance of those general ledger accounts. If your business is very small, and you only have one or two vendors or customers, you can easily track your balances in your general ledger. Subledger examples include the following: Subsidiary ledger accounts are commonplace for general ledger master accounts such as cash, accounts payable, accounts receivable, and sales. They provide the details for high-activity general ledger accounts, making it easy to pay your bills and collect balances from customers. That’s why subsidiary journals are so important. Although your general ledger balance informs you that your customers currently owe $10,000, how can you collect those funds and follow up on late payments if you don’t know which customers owe how much? The same issue can also impact your accounts receivable balance. Imagine looking at your general ledger and seeing that you currently owe $4,500 to your vendors, but having no idea how much you owe to each particular vendor. Only high-activity accounts in your general ledger will use a subledger. Because general ledger accounts only provide an ending balance for each particular account, a subsidiary ledger is used to provide the details that result in that general ledger balance. Learn more about subledgers and why they’re important for your small business.Ī subledger or subsidiary ledger provides the details that make up the balance of specific general ledger accounts. Subledgers are part of your general ledger and provide detail on specific high-activity accounts.